At a glance
- The debt is 45% larger than the $42.3 million LBA paid for the building in June 2025, according to The Real Deal; terms beyond the loan amount were not disclosed.
- For an allocator pricing office credit, the gap between $61.5 million of new debt and a $42.3 million purchase basis 16 months earlier is the main diligence question.
- The previous owners, SteelWave and Principal Real Estate Investors, defaulted on construction debt, and the property spent nearly a year in receivership before LBA bought it.
LBA Realty borrowed $61.5 million from Mesa West to refinance 285 Sobrante Way, a 125,000-square-foot Class A office building in Sunnyvale, Calif., Commercial Observer first reported.
The debt is 45% larger than the $42.3 million LBA paid for the building in June 2025, according to The Real Deal; terms beyond the loan amount were not disclosed. JLL Capital Markets' Kevin MacKenzie, Peter Thompson and Spencer Bergthold arranged the loan.
For an allocator pricing office credit, the gap between $61.5 million of new debt and a $42.3 million purchase basis 16 months earlier is the main diligence question. It points to either capitalized improvements or a valuation above the June 2025 trade.
The previous owners, SteelWave and Principal Real Estate Investors, defaulted on construction debt, and the property spent nearly a year in receivership before LBA bought it. The building opened in 2021, has on-site solar generation, and sits near Palo Alto, Cupertino and Santa Clara.
Mesa West vice president Hoony Shin said Sunnyvale has had no new Class A office deliveries in recent years even as the technology sector has grown around artificial intelligence. Class A availability fell to 11% in the second quarter of 2026, a third consecutive quarterly decline, according to JLL data.
Reported by the Real estate debt desk from Commercial Observer, The Real Deal (cited by Commercial Observer) and JLL data (cited by Commercial Observer). Published . Corrections